Fuel cycle roundup #22

20 March 2014

Karoo expands resources

Peninsula Energy has announced a 13% expansion in resources at its Karoo projects in South Africa. Updated JORC-compliant figures now put the resource estimate at 56.9 million pounds U3O8 (21,886 tU), including 30% increase in indicated resources to 21.9 million pounds U3O8 (8424 tU). The resource increase is a result of the inclusion of data from a 2013 drilling program and the adoption of revised methodology.

A final report from a recently completed a pre-feasibility study on the project is scheduled to be issued by the end of March.

Denison to acquire partner

Denison Mines has signed a letter of intent to acquire all of the issued and outstanding shares of International Enexco Ltd (IEC). On completion of the transaction, Denison anticipates that it will own approximately 97.9% of the Vancouver-based exploration company.

IEC's principal uranium assets include a 30% interest in the Mann Lake exploration project and a 20% interest in the Bachman Lake joint venture, both in Canada's Athabasca Basin. Mann Lake, 25km southwest of the McArthur River uranium mine, is 52.5% owned by Cameco and 17.5% owned by Areva Resources Canada. Bachman Lake is currently 80%-owned by Denison, so the acquisition would effectively give Denison ownership of what it already describes as one of its highest priority uranium exploration projects.

The transaction is expected to be completed in June.

Black Range out of Utah mill deal

Agreements that would have seen Black Range Minerals buy Uranium One's conventional US uranium assets, including the mothballed Shootaring Canyon uranium mill, have expired with the companies unable to agree on terms.

When the proposed acquisition was announced in November 2013, Black Range planned to use the Shootaring Canyon mill to enable it to fast-track the development of its Hansen uranium project in Colorado. Black Range says it is continuing to focus on obtaining mining permits for Hansen, and that a recently secured $2 million convertible loan from major shareholder Azarga Resources means the company is "suitably financed" to implement its near-to-medium term plans.

Rio Tinto out of Vulcan

Exploration company Tasman Resources has announced that Rio Tinto Exploration has withdrawn from its Vulcan Project, leaving Perth-based Tasman as 100%-owner of the iron-oxide copper-gold-uranium exploration project, 30km north of Olympic Dam in South Australia.